Interest rates

Government spending

Consumer confidence

Exchange rates

The increase in aggregate demand resulting from an increase in government spending

The decrease in aggregate demand resulting from an increase in taxes

The increase in investment resulting from an increase in interest rates

The decrease in consumption resulting from an increase in inflation

To stabilize the economy during economic downturns

To promote long-term economic growth

To control inflation

To reduce unemployment

Expansionary fiscal policy involves increasing government spending and/or cutting taxes, while contractionary fiscal policy involves decreasing government spending and/or raising taxes.

Expansionary fiscal policy involves decreasing government spending and/or raising taxes, while contractionary fiscal policy involves increasing government spending and/or cutting taxes.

Expansionary fiscal policy involves increasing government spending and/or raising taxes, while contractionary fiscal policy involves decreasing government spending and/or cutting taxes.

Expansionary fiscal policy involves decreasing government spending and/or cutting taxes, while contractionary fiscal policy involves increasing government spending and/or raising taxes.

The decrease in private investment resulting from an increase in government spending

The increase in private investment resulting from an increase in government spending

The decrease in consumer spending resulting from an increase in government spending

The increase in consumer spending resulting from an increase in government spending

The ratio of the change in aggregate demand to the change in government spending when the government budget is balanced

The ratio of the change in aggregate demand to the change in government spending when the government budget is in deficit

The ratio of the change in aggregate demand to the change in government spending when the government budget is in surplus

The ratio of the change in aggregate demand to the change in government spending when the government budget is in equilibrium

A government policy that automatically increases spending or cuts taxes during economic downturns

A government policy that automatically decreases spending or raises taxes during economic downturns

A government policy that automatically increases spending or cuts taxes during economic expansions

A government policy that automatically decreases spending or raises taxes during economic expansions

Discretionary fiscal policy involves government actions that are taken in response to economic conditions, while automatic stabilizers are government policies that operate automatically without the need for legislative action.

Discretionary fiscal policy involves government actions that are taken in response to economic conditions, while automatic stabilizers are government policies that operate automatically with the need for legislative action.

Discretionary fiscal policy involves government actions that are taken without response to economic conditions, while automatic stabilizers are government policies that operate automatically with the need for legislative action.

Discretionary fiscal policy involves government actions that are taken without response to economic conditions, while automatic stabilizers are government policies that operate automatically without the need for legislative action.

A situation in which the economy is stuck in a recession because interest rates are too low to stimulate investment

A situation in which the economy is stuck in a recession because interest rates are too high to stimulate investment

A situation in which the economy is stuck in a recession because government spending is too low to stimulate aggregate demand

A situation in which the economy is stuck in a recession because taxes are too high to stimulate consumer spending

The idea that saving can actually lead to a decrease in aggregate demand and economic growth

The idea that saving can actually lead to an increase in aggregate demand and economic growth

The idea that saving has no effect on aggregate demand or economic growth

The idea that saving is always good for the economy

The multiplier is equal to the inverse of the marginal propensity to consume

The multiplier is equal to the marginal propensity to consume

The multiplier is equal to the square root of the marginal propensity to consume

The multiplier is equal to the cube root of the marginal propensity to consume

Fiscal policy and monetary policy are independent of each other

Fiscal policy and monetary policy are substitutes for each other

Fiscal policy and monetary policy are complements to each other

Fiscal policy and monetary policy are unrelated to each other

Keynesian economics is too simplistic and does not take into account the complexity of the economy.

Keynesian economics is too focused on short-term economic fluctuations and does not address long-term economic growth.

Keynesian economics is too interventionist and gives too much power to the government.

All of the above

Keynesian economics provided a new understanding of how the economy works and how it can be managed.

Keynesian economics helped to end the Great Depression.

Keynesian economics laid the foundation for modern macroeconomic policy.

All of the above